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Hotels Thrive as Rooms Fill Up, But Share Prices May Be at
Peak

By

Linda Sandler and

Mitchell PacelleStaff Reporters of The Wall Street Journal

Updated June 17, 1996 12:01 a.m. ET

American hotels are on a roll, and there are plenty of tourists and business travelers willing to pay rising prices for their rooms. But in the stock market, there may not be enough investors to bid up all the shares that hotel companies are issuing at peak prices.

Since January, investors have swallowed about $2.8 billion of initial public stock offerings and secondary offerings by hotel companies and hotel real-estate investment trusts such as Wyndham Hotel, Extended Stay of America, Equity Inns and fast-growing franchiser...